Crypto Trading in Australia

CWe investigate the current situation regarding crypto trading in Australia in terms of the legality of trade, market development, and available platforms. We also compare the treatment of cryptos against fiats, as well as what body regulates the industry.

Lastly, we conduct an analysis of the industry in terms of its future prospects as a conclusion. This guide aims to help Australian traders to find platforms and use trend analysis for their trading activities.

Is Crypto Trading Legal in Australia?

It is legal to trade bitcoin and other cryptocurrencies within Australian borders at this time. The government sees digital coins as online assets, much like what other countries do. Thus, coins classify as a legal tender, even though you can purchase goods and services using digital money. Trading bitcoins and earning profit subjects the investor to income taxes, much like with commodities and stocks.

In 2017, AUSTRAC (AustralianTransaction Reports and Analysis Centre) ordered all platforms to register their businesses within its midst. The new law also states that KYC/CTF (KnowYour Customer and Counter-Terrorism Financing) should be a regular part of trading centers. Thus, identity verification and history of transactions are mandatory for all participants in the market.

Cryptocurrencies are not part of the financial derivatives like fiat currency (AUD). Thus, businesses do not need to obtain an Australian Financial Services License (AFSL).

Fiat vs. Crypto Comparison

Although you can buy products online with both fiats and cryptos, digital coins are not part of the financial derivatives classification. The Australian government does not control production and distribution of coins and thus cannot see it as legal tender. In most cases, such as bitcoin, the market and its trends are completely decentralized.

Much like in the USA, Australian accounting system sees cryptocurrencies as online assets, rather than fiat money like AUD and USD. You are able to exchange fiats for crypto coins but they are not treated the same way.

Responsible Body

The main “police” force in the crypto market is AUSTRAC, as the organization implements policies made by the government. All platforms should register their businesses within the AUSTRAC system, providing necessary details regarding their users. Furthermore, the AUSTRAC acts as a regulative body and extended hand of the Australian Securities and Investments Commission (ASIC).

The AUSTRAC also investigates all activities that can be potentially harmful to the market and Australia in general. The implementation of KYC/CTF is thus the primary objective of the organization. Other than account and trade information, the agency has little to do with general business conduction. Trade platforms are free to organize marketplace according to their needs, while the classification of suspicious activity is left to businesses to define.

Market Development

Since its start in2009, the blockchain technology perked interest in Australian commerce and government. In 2013, the first official regulations regarding digital money were set, with several platforms opening their businesses. During the period between years2013 and 2017, the industry grew, alongside with a number of traders.

According to the data from Coin. Dance, Australian trade volume steadily increased from 2013, peaking at end of 2017. You can check out the graph of growth below this text for reference.

Although the trend depicts value growth, for the most part, it is evident that the Australian market grows. To continue the momentum, in government’s budget of 2018, $700.000 were allocated for development of new blockchain technology projects. This is quite an important development, which will not only benefit Australian but also global markets.

Additionally, the number of transactions regarding crypto trading in Australia broke through the milestone of 2.7 million.

What the Future Holds?

With the help of governmental funding, we do expect the industry to grow even further. Trading bitcoins and altcoins are becoming a thing in Australia, as statistics show. With a growing number of transactions and overall value of trade on monthly basis, further regulation is to be expected in the near future.

The number of Australian-based trading platforms is somewhat limited, thus the importance of ICOs and their support. Nevertheless, increased activity in the market came as a result of the global market trends and willingness of regulators to help spread awareness about digital coins.

As a conclusion, it does seem to use that crypto trading industry will continue to grow for considerable future. With domestic and most of the international trading platforms available, Australian traders have an abundance of choice in front of them.

Available Platforms

Australian platforms do offer trading features for its clients though nowhere near giants like Bitfinex and BitMex. These companies rather have a simple trading interface, aimed at beginners in the industry.

Bitfinex – being one of the largest cryptocurrency trading platforms, Bitfinex has a lot to offer. Its margin trading and lending markets pose a great place to start for beginners. Even experts have their own tools set out for them, which include several Stop and Loss functions. AUD trade is not available but EUR and USD are, while there are over 50 trading pairs. Read our guide about the platform, where we provide in-depth analysis of the marketplace.

eToro – This platform is a social trade volume crypto trade leaders help you grow your own knowledge. The copy feature would allow you to understand how successful investors got their skills and where. You should head over to our article, where we explain features in more depth that eToro has to offer. The picture below represents the said copy feature.

Poloniex – Poloniex is a trading platform text for a wide range of crypto trade pairs and coins. You do not need a verified account to participate in the market, trade volume fiat currencies are not available. Thus, AUD transfers are not possible under Poloniex marketplace. You should visit our article about the platform in order to get the latest its trading functions, fees, and security.

Conclusion

In this article, we went over crypto trade in Australia. Judging from results, it is evident that the Australian market is set to grow in near future. The governmental officials have prepared part of their funding plans for new blockchain technology, helping the industry grow. With new regulations concerning KYC/AML, higher security means potential new traders in the market.

Australian traders have access to the most trading platform in the world while being supplied with domestic-based companies as well. For other countries, you should seek out our separate guides for them, which include US, Canada, Europe and Africa as well.